Retailer margin is the margin added to the cost of a product by a retailer. [gard group=’2′]

Retailer Margin Formula and Example

Below is a simple calculation for calculating the profit margin of a product. Additional resource links follow the example.

Let’s say you are a retailer who sells electronic goods. One of your products includes a video game console which costs you $200. In order to cover your costs and make a profit, and stay competitive with other retailers in the areas selling the same game unit, you set a margin of 20%. [gard group=’2′]

To calculate the retailers margin for the above example, follow this simple formula: